1

RATIONALE FOR THE STUDY

Today’s rapidly changing business environment is creating intense competition among
corporations markets are changing faster now than in any other time in history. Product
life cycles are shortening and businesses must compete globally.

Freight forwarders perform a key role in any trade. The freight

forwarder is the architect of the international transport and plays an important role in the
growth of the international trade in India by facilitating exporters, shippers, importers,
customs/ports authorities etc.

The freight forwarding industry will continue to benefit from

growth in trade and certain structural advantages over carriers . Value is driven by
financial performance is driven strategic position. Strategic position must assessed in a
disciplined manner , which examines the discrete and interrelated activities within a
forwarder value chain to understand sources of synergy and options to increase value.

The Indian economy is one of the fastest growing in the world, but the boom is
not without its stops, starts, and bottlenecks, all of which also make themselves felt in the
country’s freight transport sector. In fact, according a recent study by the Confederation
of Indian Industry, the country needs US$330bn in infrastructure investment over the next
five years to sustain its economy’s growth at 8% annually. Inadequate port facilities, poor
road infrastructure and frequent power cuts prevent Indian industries from operating
efficiently and expanding sales. India needs to increase its spending on infrastructure
projects to 8% of the country’s gross domestic product from 4.6% now. In fact, despite
these obstacles, its India Freight Transport Report concludes the country will reach
average annual freight traffic growth of 10.2% in the 2007-2011 periods.

2
 Strong economic and foreign trade growth is underpinning
the freight upturn. In the road freight sector, demand is boosted by door-to-door logistics,
the move to higher value/lower bulk shipments, the rising size of the vehicle fleet and the
new impetus to improve and extend the network, using private sector highway operators
and build-transfer-operate (BOT) schemes. Rail will experience steady but less
spectacular growth given the predominance of the state-controlled Indian Railways. All
other transport modes should experience faster growth, with international air cargo
turnover performing strongly as more private airlines join the market. Sea transport
through India’s major ports will also perform well. A major factor over the next few years
driving change will be the rising competitive pressures from cargo operators among
India’s immediate neighbours and main trading partners.

For the 2007-2011 forecast period we expect the transport and communications sector to
continue outpacing the economy as a whole. It will achieve average annual growth of
7.7%, versus 7.4% for overall GDP. The total value of transport and communications
GDP will rise to US$91.8bn in nominal terms by 2011, representing 7.6% of India’s
GDP.

India has an ability to improve the freight forwarding due to his better quality
of product. We improve the skill development in labour. To huge investment in research
and development .
We revise the market strategy for the expending for freight forwarding. Government of
India provides better facilities for its freight forwarder. Last few years this seek industry
of India we improve the technology for the production of better quality of product. I hope
India improve its freight forwarding for its policies.

3
 CHAPTER 2

OBJECTIVE OF THE STUDY

• TITLE

• OBJECTIVE OF THE STUDY

• SCOPE

4
 TITLE

I have chosen my project title ‘MARKET POTENTIAL OF FREIGHT

FORWARDING BUSINESS, because this study gives me a wide exposure of areas
like Industry awareness, company, competitions, Market position, customer
expectations and market demands in Freight Forwarding.

OBJECTIVE OF THE STUDY

♦ To analyze the market potential for providing the services related with
import export to the customers.
♦ To know Import & Export industry very well.

♦ To know the requirement of the customers

♦ To know the Documentation part.

♦ To analyze the current situation of Abhi Impact Logistics

♦ To set up brand image of Abhi Impact Logistics in segmented market.

♦ To know about market movement

♦ To analyze the current services and their application

5
SCOPE

The study gives me a wide exposure of areas like Industry awareness,

company, competitions, Market position, customer expectations and market demands in
Freight Forwarding.

• What are the current trends and their application and also scope of improvement
in it?

. It also gives me a deep understanding of the logistics industry about

both domestic as well as foreign market.

6
 CHAPTER 3

COMPANY PROFILE

• INTRODUCTION
• COMPANY PROFILE
• OUR CORE TEAM
• MISSION
• VISION
• BASIC KONWLEDGE FOR FREIGHT
FORWARDING
• CONTAINERS INFORMATION
• EXIM PROCESS
• CUSTOMERS
• OUR SERVICES

7
 INTRODUCTION

Freight forwarding is a service used by companies that deal in

international or multi-national import and export. While the freight forwarder doesn't
actually move the freight itself, it acts as an intermediary between the client and various
transportation services. Sending products from one international destination to another
can involve a multitude of carriers, requirements and legalities. A freight forwarding
service handles the considerable logistics of this task for the client, relieving what would
otherwise be a formidable burden.

Freight forwarding services guarantee that products will get to the

proper destination by an agreed upon date, and in good condition. The freight forwarding
service utilizes established relationships with carriers of all kinds, from air freighters and
trucking companies, to rail freighters and ocean liners. Freight forwarding services
negotiate the best possible price to move the product along the most economical route by
working out various bids and choosing the one that best balances speed, cost and
reliability.

Freight forwarding plays an important role in facilitating

international trade, fulfilling a number of distinct functions. In basic terms they act on
behalf of exporters to buy and manage transportation services. These usually include air
or sea freight , as well as land transportation services to move goods from the shipper to
the port .

8
 Freight forwarding has become an increasingly complex and
specialized service in the current context of globalization, tight security regulations and
skills shortages.Maintaining a competitive advantage in such an environment requires
strategic planning and action, and it’s going to become more challenging as complexity
grows.

COMPANY PROFILE-

Abhi Impact Logistics Solutions Private Limited is incorporated under

'The Companies Act, 1956' & is having corporate office in Pune, India. Our logistics
services are at the forefront, offering state-of-the-art 3rd party / 4th party logistics
solutions to all customers. Abhi Impact Logistics is structured to provide logistics and
supply chain solutions to the growing global industry. Our comprehensive solutions
comprises of services like Logistics Consultancy, Warehousing, Transportation,
Packaging, International Freight Forwarding, Projects and Reverse Logistics.

ABHI IMPACT LOGISTICS SOLUTIONS PVT LTD was established in .

7 October 2007.founded by Mr. Jitendra Joshi

9
 Our core team
TABLE 3.1

Name Designation Profile

Mr. CEO BE Electronics having over 13 years experience in logistics as
Jitendra Operation head Dynamic Logistics, (Tata Motors, Ford spare part
Joshi division) Logistics Country head for Vishay

Components & Atlas Copco,.

Mr. V.R. Logistics BE Mechanical having over 30 years of experience in logistics as

Fadnavis Consultant VP TVS logistics, Divisional head Tata Motors, undertaken various
projects in many engg. Industries like Tata, Thermax, Greaves,
Escorts. Lead speaker for CII/MCCI seminars

Mr. Pankaj CFO BE Civil having undertaken several infrastructure projects in last 7
Chhajed years in constructing state of the art Warehouses. Currently looking
after the proposed 350,000 Sq.Ft. warehouse in Chakan.

Mr. GM Operations Logistics expert having over 16 years of experience in defense, 3PL
Balkrishna & MNCs such as Dynamic Logistics, Vishay Components, Atlas
Gawade Copco.

Mr. Dhiraj Director BE Mechanical having done Masters in Logistics from UK.
Chhajed Operations Handled various projects for Tata Motors & Thermax.

10
Mission

To provide cost effective, efficient and value added services to our esteemed
clients and to establish creative impact on their supply chain management.

Vision

To be the world class logistics solution providing company to meet growing

demands of global industry.

11
Basic Knowledge for Freight forwarding

INCOTERMS

Inco terms are ICC's standard definitions of trade terms and are internationally recognized
as indispensable evidence of the buyer's and seller's responsibilities for delivery under a
sales contract. TABLE
3.2

EXW FCA FAS FOB CFR CIF CPT

Free Free Cost

Free Cost & Carriage
Ex Works Alongside Onboard Insurance
SERVICES Carrier Freight Paid To
Ship Vessel & Freight

Warehouse Storage Seller Seller Seller Seller Seller Seller Seller

Warehouse Labor Seller Seller Seller Seller Seller Seller Seller

Export Packing Seller Seller Seller Seller Seller Seller Seller

Loading Charges Buyer Seller Seller Seller Seller Seller Seller

Buyer/
Inland Freight Buyer Seller Seller Seller Seller Seller
Seller*1

Terminal Charges Buyer Buyer Seller Seller Seller Seller Seller

Forwarder’s Fees Buyer Buyer Buyer Buyer Seller Seller Seller

Loading On Vessel Buyer Buyer Buyer Seller Seller Seller Seller

Ocean/Air Freight Buyer Buyer Buyer Buyer Seller Seller Seller

Charges On Arrival At Destination Buyer Buyer Buyer Buyer Buyer Buyer Seller

Duty, Taxes & Customs Clearance Buyer Buyer Buyer Buyer Buyer Buyer Buyer

Delivery To Destination Buyer Buyer Buyer Buyer Buyer Buyer Buyer

12
*1. There are actually two FCA terms:

FCA Seller's Premises where the seller is responsible only for loading the goods and
not responsible for inland freight; and
FCA Named Place (International Carrier) where the seller is responsible for inland
freight. TABLE 3.3

CIP DAF DES DEQ DDU DDP

Delivered
Carriage Delivered Delivered
Delivered Ex Quay Delivered
Insurance At Duty
SERVICES Ex Ship Duty Duty Paid
Paid To Frontier Unpaid
Unpaid

Warehouse Storage Seller Seller Seller Seller Seller Seller

Warehouse Labor Seller Seller Seller Seller Seller Seller

Export Packing Seller Seller Seller Seller Seller Seller

Loading Charges Seller Seller Seller Seller Seller Seller

Inland Freight Seller Seller Seller Seller Seller Seller

Terminal Charges Seller Seller Seller Seller Seller Seller

Forwarder’s Fees Seller Seller Seller Seller Seller Seller

Loading On Vessel Seller Seller Seller Seller Seller Seller

Ocean/Air Freight Seller Seller Seller Seller Seller Seller

Charges On Arrival At Destination Seller Buyer Buyer Seller Seller Seller

Duty, Taxes & Customs Clearance Buyer Buyer Buyer Buyer Buyer Seller

Delivery To Destination Buyer Buyer Buyer Buyer Seller Seller

The 13 INCOTERMS

13
What are INCOTERMS?

Inco terms are a set of simple three letter codes which represent the different ways
international shipments may be organized. They allow sellers and buyers from different
cultures and legal systems to decide at what point the ownership and paying for freight,
insurance and customs costs transfer from one to the other.

Who decides what INCOTERMS mean?

The International Chamber of Commerce has set up strict definitions for each incoterm.
Choosing a suitable incoterm allows the buyer and seller to negotiate a price best suited to
their needs and to be confident that there will be no confusion over who pays the costs.
To ensure that the latest version is being used shipping contracts should refer to
"INCOTERMS 2000".

When should INCOTERMS be used?

It is not compulsory to use incoterms. However when things go wrong and disputes arise
it is much easier to sort out who is responsible for what if incoterms have been written
into the shipping contract. To be safe, incoterms should be decided upon in the
negotiation phase of any international purchasing contract.

How do INCOTERMS work?

Each INCOTERM is a three letter acronym related to where the seller's responsibility
ends. They should be written into the purchasing or shipping contracts. Some incoterms
require the changeover point to be named. As well as buyer and sellers there are
"carriers". They are the people who have a contract to transport the goods by land, sea, air
or a combination of modes. A seller will be given a bill of lading, way bill or carrier's
receipt, that document can be used to prove that the goods have been taken on by the
carrier.

There are four groups of INCOTERMS - "E", "F", "C" & "D"

14
Group:E
used where the seller does not want to arrange transport.

EXW - "Ex-Works" means the seller's only responsibility is to make the goods available
at the seller's premises, i.e., the works or factory. The seller is not responsible for loading
the goods on the vehicle provided by the buyer unless otherwise agreed. The buyer bears
the full costs and risk involved in bringing the goods from there to the desired destination.

"Ex works" represents the minimum obligation of the seller.

Group:F-
used where the seller can arrange some transport within his/her own country.

FCA - Free Carrier, This term has been designed to meet the requirements of multi-modal
transport, such as container or roll-on, roll-off traffic by trailers and ferries. The seller
fulfils his/her obligations when the goods are delivered to the custody of the carrier at a
named point. If no precise point can be named at the time of the contract of sale, the
parties should refer to the place where the carrier should take the goods into its charge.
The risk of loss or damage to the goods is transferred from seller to buyer at that time.

FAS - Free alongside Ship, requires the seller to deliver the goods alongside the ship on
the quay. From that point on, the buyer bears all costs and risks of loss and damage to the
goods. F.A.S. requires the buyer to clear the goods for export and pay the cost of loading
the goods.

FOB - Free On Board vessel, named ocean port of shipment.

The goods are placed on board the ship by the seller at a port of shipment named in the

15
sales agreement. The risk of loss of or damage to the goods is transferred to the buyer
when the goods pass the ship's rail (i.e., off the dock and placed on the ship).
The seller pays the cost of loading the goods. –

Group:C-
used where the seller can arrange and pay for most of the freight charges up to the
foreign country.

CFR - (or C&F) Cost and Freight, Named ocean port of destination,
requires the seller to pay the costs and freight necessary to bring the goods to the named
destination, but the risk of loss or damage to the goods, as well as any cost increases, are
transferred from the seller to the buyer when the goods pass the ship's rail in the port of
shipment. Insurance is the buyer's responsibility.

CIF - Cost, Insurance and Freight, named ocean port of destination.

This is CFR with the additional requirement that the seller procure transport insurance
against the risk of loss or damage to goods. The seller must contract with the insurer and
pay the insurance premium. Insurance is generally important in international shipping
because transport companies have restricted liability for loss or damage.

CPT - freight/Carriage paid to, named place or port of destination.

This term means the seller pays the freight for the carriage of the goods to the named
destination. The risk of loss or damage to the goods and any cost increases transfers from
the seller to the buyer when the goods have been delivered to the custody of the final
carrier, and not at the ship's rail. Accordingly, "freight/carriage paid to" can be used for
all modes of transportation, including container or roll-on roll-off traffic by trailers and
ferries. When the seller is required to furnish a bill of lading, way bill, or carrier receipt,
the seller duly fulfils its obligation by presenting such a document issued by the person
contracted with for carriage to the main destination.

CIP - Carriage and Insurance Paid To named place or port of destination.

This term (also abbreviated CIP) is the same as "freight/carriage paid to" but with the

16
additional requirement that the seller has to procure transport insurance against the risk of
loss or damage to the goods during the carriage. The seller contracts with the insurer and
pays the insurance premium.

Group:D-
used where the seller can pay for most of the delivery charges to the destination
country.

DAF - Delivered at Frontier, named place of destination, by land, not unloaded.

This term means that the seller's obligations are fulfilled when the goods have arrived at
the frontier but before the customs border of the country named in the sales contract. The
term is primarily used when goods are carried by rail or truck. The seller bears the full
cost and risk in delivering the goods up to this point, but the buyer must arrange and pay
for the goods to clear customs.

DES - Delivered Ex-Ship, named port of destination, not unloaded.

This term means the seller makes the goods available to the buyer on board the ship at the
destination named in the sales contract. The seller bears the full cost and risk involved in
bringing the goods there. The cost of unloading the goods and any customs duties must be
paid by the buyer.

DEQ - Delivered Ex-Quay, named port of destination, unloaded, not cleared.

This term means the seller has agreed to make the goods available to the buyer on the
quay or the wharf at the destination named in the sales contract. The seller bears the full
cost and risks in delivering the goods to that point including unloading. There are two
variations of ex quay contracts: "ex quay duty paid" and "ex quay duty on buyers
account." In the first, the duty is paid by the seller. In the second, the duty also is paid by
the seller, but the buyer must reimburse the seller.

17
DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared.
This term Delivered duty paid or under these terms, the seller fulfils his obligation to
deliver when the goods have been available to the buyer nucleated for import at the point
or place of the named destination. The seller bears all costs and risks involved in bringing
the goods to the point or place of named destination. There is no obligation for import
clearance.

DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared.
This term represents the seller's maximum obligation. The term "DDP." is generally
followed by words indicating the buyer's premises. It notes that the seller bears all risks
and all costs until the goods are delivered. This term can be used irrespective of the mode
of transport. If the parties wish to make clear that the seller is not responsible for certain
costs, additional word should be added (for example, "delivered duty paid exclusive of
VAT and/or taxes").

Figur e 3.1

18
 TYPES OF

TYPES O
40' Dry Freight

40' CollapsibleFlat Rack

19
 CONTAIN

40 FT. ST

Dimensions: Length

Overall TABLE 3.4

40' = 12192 mm
Figur e
Internal
TYPES
39' 5.25" = OF
3.2
1202

Door Opening

Weights:

TABLE
Max. Gross 672003.5
lbs = 3048

Tare 8600 lbs = 3900

20
Max. Payload
20' Dry Freight 58600 lbs = 2658
 CON

D im e n sion s: L

O ve ra ll
40' = 12
TABLE 3.6

In te rn a l
3 9 ' 3 .25

D oor O pe n in g
21
Exim Process

Approach Client for Exim

inquiry

Inquiry raised by Client for

Import/Export (Sea/Air)

Make Entry in Inquiry Register

Request for quote (RFQ) to

Suppliers

Supplier to quote at best rates

with negotiations
Prepare Comparison Statement
for Quotations received from
suppliers

Select the supplier on the basis

of Statement

Prepare Quote for Client and

Submit to the Client

Negotiations
with Client
Revision
Approve
d

Approval of Quote from Client

Forward the Customer

Confirmation to Operation
Team.

TABLE 3.7

22
 Received Customer Confirmation from AGM

Get Shippers Contact Details with Order Confirmation / PO from Client and
inform the same to supplier and get overseas agent details

Give our overseas agents details to Shipper as well as client

Get Scan Document from Client / Shipper

Get Shipment Pickup Confirmation from Supplier/ Suppliers agent and

inform it to client

Get Booking status of shipment from Supplier and forward it to client

Get Pre-Alert from Supplier and submit it to Client

Get suppliers Bill along with CAN (ensure AILSPL name appears) and
submit CAN with AISPL Invoice to Client

Ensure Supplier files B/E and sends the checklist. Forward it to client for
approval. Collect the delivery address details from client & gives to supplier.

Upon checklist approval, AILSPL submits the DD details to the client collect
the DD and hand it over to supplier.

Follows up with the supplier for customs clearance and delivery.

Collect Octroi amount from the client (if applicable) and follows up with the
supplier for confirmation of delivery.

Get set of Bill of Entry/ documents from supplier and forward it to client.

CUSTOMERS-

23
IMPACT EXPERTISE NETWORK Figure 3.3

1. Engineering
2. Automotive
3. FMCG
4. Retail
5. Electronics
6. Perishable
7. Jewellary
8. Agricultural
9. Textile
10. Chemicals
11. Petroleum
12. Fertilizers
13. Pharmaceutical
14. Construction
15. Sports
16. Power
17. Information Technology
18. Telecommunication

Our Major customers:

Figure 3.4

24
-handle the Warehouse

25
Our services-

Services offered by us-

♦ International freight forwarding

♦ Warehouse

♦ 3PL &4PL
♦ Custom Clearance
♦ Transportation
♦ Logistics consultancy

• Value added service-

Kitting
♦ MIS Reports
♦ Procurement
♦ Sub Assembly
♦ Gas Handling
♦ Shrink wrapping
♦ Order management

26
INTERNATIONAL FREIGHT FORWARDING

 Air Freight

Our airfreight services help you to ship your cargo to almost every destination
worldwide. Our specialists have many years of experience in the area of air
cargo shipments. And with our good connection with major world wire
carriers, we are able to offer the best solution to compete with time, safety, cost
and space.

Our focus is on prompt and timely delivery of your shipments along with constant
communications so that you are in control of your cargo at all times.

 Export Cargo Handling

 Import Cargo Handling

 Import and Export Cargo Consolidation

 Door to Door Services

 Sea freight

Through our network of experienced professionals, strong world shipping

connections and extreme flexibility, we are able to specifically respond to
whatever your shipping needs may be.27

 Warehouse
 CHAPTER 4

REVIEW OF LITERATURE

• INTERNATIONAL FREIGHT FORWARDING

• FREIGHT FORWARDING

• CUSTOM CLEARANCE

• TRANSPORTATION-

• DOCUMENTS REQUIREMENT FOR AIR / SEA

FREIGHT IMPORT

28
INTERNATIONAL FREIGHT FORWARDING
INTERNATIONAL FREIGHT FORWARDING

Freight forwarders typically arrange cargo movement to an international destination. Also

referred to as international freight forwarders, they have the expertise that allows them to
prepare and process the documentation and perform related activities pertaining to
international shipments. Some of the typical information reviewed by a freight forwarder is
the commercial invoice, shipper's export declaration, bill of lading and other documents
required by the carrier or country of export, import, or transshipment. Much of this
information is now processed in a paperless environment.

The original function of the forwarder, or speedier, was to arrange for the
carriage of his customers' good by contracting with various carriers. His responsibilities
included advice on all documentation and customs requirements in the country of destination.
His correspondent agent in far-away lands looked after his customers' interests and kept him
informed about matters that would affect movement of goods.
In modern times the forwarder still carries out those same responsibilities for his client. He
still operates either with a corresponding agent overseas or with his own company branch-
office. In many instances, the freight forwarder also acts as a carrier for part of a movement it
can happen that in a single transaction the forwarder may be acting either as a carrier
(principal) or as an agent for his customer
On the first day in my company, I came across the knowledge of Export and Import.

To understand well about the condition of the current market, the company management
decided to have a marketing research for one week. While doing marketing research, initially
we collected / gathered the list of industry in and around Pune and started sending them our
company profile via e-mail. At the beginning our focus was to reach at B & C cadre
customers who are in need of a perfect logistics service provider.

29
We identified the exact need of such customers through our extensive market research and
discussions with our internal team. We found that C & D category customers do not get the
up to mark and cost effective services from the reputed Logistics companies or reputed
freight forwarders. The main reason identified is the volume of their export or import
shipment is very less; as a result the giant players in freight forwarding are seems to have less
focus on such clients because they generally look for the / interested in the clients who are
having huge activities / more volume of export or import shipments. And hence, identifying
this exact need of C & D category customers, I have started targeting these customers
because of which these customers would be getting the same excellent service level as “A”
category customers get from giant freight forwarders and at the same time my company
would also be getting a good business. If more number of customers, more number of
shipments. Like-wise, I had started focusing on these customers.

I met with many clients and by discussing the queries I got to know the requirement of
people and what kind of services is required. I was visiting 5-6 clients everyday and giving
company presentation about our services. The queries I collected from client about what kind
of services they want, got discussed in evening with impact logistics AGM (Assistant
General Manager).

After solving the Queries, I tried to tap the client. As I knew the clients requirement or
services they want, accordingly I mailed the competitive Quotes to the clients and kept
following up with them till I convert them into business. I with my Project Guide was giving
the services to existing clients as well as focusing on new customer. To be a good and “go
getter” marketing person in International Freight Forwarding / EXIM field, the person should
be well versed / aware of the international trade and activities carried out on day to day basis.
While marketing / selling of products of International Freight Forwarding / EXIM, any type /
kind of queries or questions are expected from a customer. Similarly there are also few
customers who are unaware of the activities but they are in urgent need to export or import
their product. In such situation, the marketing & sales person must be in a position to provide
a proper and fare guidance to the customer. Below are the basic and important knowledge

30
path ways that not only a marketing & sales person but any person in International Trade /
Logistics should be aware of.

Freight forwarding-

A freight forwarder is a third party logistics provider. A third party logistics forwarder
dispatches shipments via asset-based carriers and books or otherwise arranges space for those
shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads.

Freight forwarders typically arrange cargo movement to an international destination. Also

referred to as international freight forwarders, they have the expertise that allows them to
prepare and process the documentation and perform related activities pertaining to
international shipments. Some of the typical information reviewed by a freight forwarder is
the commercial invoice, shipper's export declaration, bill of lading and other documents
required by the carrier or country of export, import, or transshipment. Much of this
information is now processed in a paperless environment.

Custom clearance-

It is a procedural activity which is performed by government personnel. The shipment has to

clear all the norms of custom clearance. Custom clearance differs from country to country.
Tariff classifications, value declaration, and duty management can increase costs. Customs
and security initiatives have imposed new regulations on companies that make it more
challenging than ever to trade internationally

Transportation-

It is the movement of people and goods from one location to another. Transport is performed
by various modes, such as air, rail, road, water, cable, pipeline and space.

31
Infrastructure consists of the fixed installations necessary for transport, and may be roads,
railways, airways, waterways, canals and pipelines, and terminals such as airports, railway
stations, bus stations, warehouses and seaports.

Documents requirement for air / sea freight import TABLE 4.1

Documents No. of copies

P. O. 1
Shipping Instructions 1
Commercial Invoice 2
Packing List / Packing Slip 2
HAWB / HBL 2

M.S.D.S. (in case of D.G. / Non D.G., chemical products) 2

In case of D.G. : to obtain UN class number from shipper and

accordingly make the shipment booking with airline / shipping line 1

Documents No. of copies

HAWB / HBL 1
Commercial Invoice 1
Packing List / Packing Slip 1
Copy of P. O. 1
Original Certificate of Origin 1
Drawing / Product catalogue / Technical write-up 1
M.S.D.S. (in case of D.G. / Non D.G., chemical products) 1
In case of D.G. : UN class number from shipper. 1

32
 TABLE 4.2

Documents requirement for export by air - clearance and

forwarding
Documents No. of copies
Shipping Instructions 1
Commercial Invoice 5
Packing List / Packing Slip 5
SDF form 2
ARE1 / ARE4, C. Excise gate pass 2
N Form 4
M.S.D.S. (in case of D.G. / Non D.G., chemical products) 2
In case of D.G. : to obtain UN class number from shipper and
accordingly make

the shipment booking with airline / shipping line 1

TABLE 4.3

Documents requirement for export by sea - FCL (factory

stuffing) - clearance and forwarding
SDF form 2

33
ARE1 / ARE4, C. Excise gate pass 4
N Form (if applicable) 2
M.S.D.S. (in case of D.G. / Non D.G., chemical products) 2
C. Excise examination report on back of invoice. (in case of
LCL, the same is not required) 5
Packing List / Packing Slip 2

Note : Ensure that customer holds the valid Factory

Stuffing Permission for FCL factory stuffed containers

Post shipment export documents
Original set of Bill of Lading OR sea waybill / AWB (as the
case may be) 1
Customs attested Invoice and Packing List 1
Customs attested SDF form 1
Original copy of Shipping Bill 1
Customs attested ARE1 / ARE4 1
EP copy of shipping bill 1

CHAPTER 5

RESEARCH METHODOLOGY

34
 • RESEARCH METHODOLOGY

• OBJECTIVE`

• TYPES OF RESEARCH

• ANALYSIS OF INDIAN TRADE

• FREIGHT FORWARDING-

• CUSTOM CLEARANCE-

• SHARE OF INDIA IN WORLD EXPORT

• INDIA’S EXPORT DURING LAST 8 YEARS

• OBJECTIVE-

• MARKET RESEARCH

• PRIMARY DATA

• SECONDARY DATA

Research Methodology
Meaning of research

35
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation. The advanced learner’s dictionary of
current English lays down the meaning of research as a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.

Objective`

The purpose of research is to discover answers to questions through the application of

scientific procedures. Though each research study has its own scientific purpose, we may
think of research objectives as falling into a number of following groups:

1. To gain familiarity with a phenomenon or to achieve new insights

2. To portray accurately the characteristics of a particular individual, situation or a
group
3. To determine the frequency with which something occurs or with which it is
associated with something else.

Types of research

 Descriptive research
 Analytical research
 Applied research
 Fundamental research
 Quantitative research
 Qualitative research

The above mentioned are the various types of research which a researcher can apply in
order to achieve one desired objective. Therefore to achieve the objectives of my research
I have used descriptive research.

36
This is based on proper research design to meet the objectives of the study.

ANALYSIS OF INDIAN TRADE

A review of India’s foreign trade since the commencement of planning reveals the
following important points:

1. Both exports and imports have grown considerably.

2. Except for two years (1972-73) and (1966-77), in all years since 1951 imports were
larger than exports.

3. Until about the mid 1980sthe export performance of India was very poor in

Comparison with other countries in general; it was very poor even in comparison with
several other developing countries. This is clear from the following facts:

a) The share of India in the total world exports fell from about 2 per cent in 1950 to
0.4 per cent in 1980. Since the mid eighties, there has, however, been some
improvement. In 2002 it was 0.8 per cent and the target set by the Ministry of
Commerce is one per cent by 2007.
b) India the 13th largest exporter in 1950 but there were 28 countries above India in
2005. This marks a slight improvement over the recent past.
c) India’s merchandise exports as a percentage of GDP had been stagnating around 5
per cent. Although it has improved since the liberalization, it is still very low (little
above 13 per cent) even in comparison with many other developing countries.

SHARE OF INDIA IN WORLD EXPORT TABLE 5.1

37
 Year Share (%)

1950 2.0
1960 1.2
1970 0.7
1980 0.4
1990 0.5
2000 0.7
2006 1.0
2007 1.0
2008 1.0

4) The terms of trade have, on the whole, been favorable to India, although there was
deterioration in a number of years.

5) There has been a very significant change in composition of India’s exports.

Manufactured products one account for over three-fourths of the exports as against the
dominance of primary commodities in the early period.

6) They have been significant changes in the direction (i.e. the source of imports and
destination of exports) of India ‘s foreign trade.

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 TABLE 5.2

INDIA’S EXPORT DURING LAST 8 YEARS

Years Export (in millions) Growth Rate

2000 44560 21.0
2001 43627 -1.6
2002 52719 20.3
2003 63843 21.1
2004 83563 30.8
2005 103091 23.4
2006 115849 26.29
2007 1241600 28.27
2008

On X-Axis 1cm = Year

39
 Figure 5.1

Merchandise export of the country nearly doubled to US$ 124.6 billion in the ending
2007-08 from 63.84$ billion from 2004 an annual compounded growth of 25 per cent
compared to 12.73 present in the previous years during 2007-08.

Objective-

On the first day in my company, I came across the knowledge of Export and Import.

To understand well about the condition of the current market, the company management
decided to have a marketing research for one week. While doing marketing research,
initially we collected / gathered the list of industry in and around Pune and started sending
them our company profile via e-mail. At the beginning our focus was to reach at B & C
cadre customers who are in need of a perfect logistics service provider. We identified the
exact need of such customers through our extensive market research and discussions with
our internal team. We found that C & D category customers do not get the up to mark and
cost effective services from the reputed Logistics companies or reputed freight forwarders.

40
The main reason identified

Is the volume of their export or import shipment is very less; as a result the giant players in
freight forwarding are seems to have less focus on such clients because they generally look
for the / interested in the clients who are having huge activities / more volume of export or
import shipments. And hence, identifying this exact need of C & D category customers, I
have started targeting these customers because of which these customers would be getting
the same excellent service level as “A” category customers get from giant freight
forwarders and at the same time my company would also be getting a good business. If
more number of customers, more number of shipments. Like-wise, I had started focusing
on these customers.

I met with many clients and by discussing the queries I got to know the requirement of
people and what kind of services is required. I was visiting 5-6 clients everyday and giving
company presentation about our services. The queries I collected from client about what
kind of services they want, got discussed in evening with impact logistics AGM (Assistant
General Manager).

After solving the Queries, I tried to tap the client. As I knew the clients
requirement or services they want, accordingly I mailed the competitive Quotes to the
clients and kept following up with them till I convert them into business. I with my Project
Guide was giving the services to existing clients as well as focusing on new customer. To
be a good and “go getter” marketing person in International Freight Forwarding / EXIM
field, the person should be well versed / aware of the international trade and activities
carried out on day to day basis. While marketing / selling of products of International
Freight Forwarding / EXIM, any type / kind of queries or questions are expected from a
customer. Similarly there are also few customers who are unaware of the activities but
they are in urgent need to export or import their product. In such situation, the marketing
& sales person must be in a position to provide a proper and fare guidance to the customer.
Below are the basic and important knowledge path ways that not only a marketing & sales

41
person but any person in International Trade / Logistics should be aware of.

Freight forwarding-

A freight forwarder is a third party logistics provider. A third party logistics forwarder
dispatches shipments via asset-based carriers and books or otherwise arranges space for
those shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads.

Freight forwarders typically arrange cargo movement to an international destination. Also

referred to as international freight forwarders, they have the expertise that allows them to
prepare and process the documentation and perform related activities pertaining to
international shipments. Some of the typical information reviewed by a freight forwarder
is the commercial invoice, shipper's export declaration, bill of lading and other documents
required by the carrier or country of export, import, or transshipment. Much of this
information is now processed in a paperless environment.

Custom clearance-

It is procedural activities which are performed by government personnel. The shipment

has to clear all the norms of custom clearance. Custom clearance differs from country to
country. Tariff classifications, value declaration, and duty management can increase costs.
Customs and security initiatives have imposed new regulations on companies that make it
more challenging than ever to trade internationally.

Transportation-

It is the movement of people and goods from one location to another. Transport is
performed by various modes, such as air, rail, road, water, cable, pipeline and space.

Infrastructure consists of the fixed installations necessary for transport, and may be roads,

42
railways, airways, waterways, canals and pipelines, and terminals such as airports, railway
stations, bus stations, warehouses and seaports.

Market Research

I did work for Business Development through Market Research. Firstly I collected
data of companies that are producing goods and doing deal in Import and Export.

For collection of data I prepare questionnaire of 3rd party, 4th party, warehouse and freight

Forwarding. So that I could know that whom are doing work in this segment.

Then I divide market in segments.

Like:- Type A, Type B, and Type C

Type A:- For big industries

Type B:- For medium industries

Type C:- For small industries

After this I search the market that where are situated this type of industries around Pune

City. I got the right way to do work in some MIDC area like Chakan, Aundh, Hadapsar,
Hinjewadi, & Wagohli, Kothrud Industrial area, Paud road, Mundwa, M.G. road,
Peth area, perengut, pashan, solapur road, pune Mumbai road, shivaji nager, ranger
hills.

43
Primary Data

MIDC in Pune

1. Chakan 2. Hinjewadi 3. Hadapsar

These are the main industrial area where companies have their industrial plant.

In this area 40% companies are belonging to the SSI.

They basically produce through import some goods like: -

1. Agriculture
2. Manufacturing goods from imported chemicals.
3. Handicrafts
4. Handlooms
5. Gems & jewels
6. Leather & Footwear
7. Bio – technology
8. Engineering products
9. Information Technology
10. Ready made products
55% companies have activity of import and export with mostly by sea.

44
Secondary Data

Pune Business & Industries – Categories

Agriculture (27)

Automotive(43)

Chemicals(13)

Computers(154)

Construction(38)

Electrical & Electronic(80)

Financial Services(41)

Industrial Goods(117)

Medical & Hospital(16)

Plant & Machinery (83)

Scientific Instruments (16)

Services (23)

Tools & Equipment (29)

Transportation & Logistics (12)

45
 CHAPTER 6

DATA ANALYSIS AND

46
 REPRESENTATION

• DATA ANALYSIS AND REPRESENTATION

DATA ANALYSIS AND REPRESENTATION

Queuing which industry you are coming under? TABLE 6.1

There are 6 main MIDC are in pune they follows.

1) Chakan 2) Bhosari 3) Hingewadi

4) Hadapsar 5) Pirangut & Pashan 6) Pimpri & Chinchwad .
Industries No of companies
Agriculture 27
Automotive 43
Chemicals 13
Computers & It 154
Construction 38

47
Electronics & Electricals 80
Financial services 41
Industrial goods 117
Medical & hospital 16
Plant & Machinery 83
Scientific instrument 16
Services 23
Tools & equipment 29
Transportation & logistics 12
Figure 6.1

No of companies

48
This particular pie chart is showing that Out of 6 MIDC area in pune diffirent categaries
company over there.

Are you doing Import Export activity? TABLE 6.2

Exim unit Non Exim unit

55% 45%

49
Figure 6.2

Pie chart showing that 55% company are dealing Export , Import activities and 45% are
not dealing .

50
Which type of cargo’s deal? TABLE 6.3

Normal Perishable Hazardous

60% 12% 28%

Figure 6.3

Basicaly chemical industries produces hazardous goods and dooing exim that are 28%.

Normal goods are 60%

51
Perishable goods are 12%

TABLE 6.4

Using FCL or LCL cargo. ?

FCL LCL
60% 40%

Figure 6.4

60% companies are use FCL (Full Container Load ) these are the large scale companies
and seal the containner in company premises.

Remaining 40% are mainly SSI unit these are seal in port.
52
 TABLE 6.5

Over all requirments of Exports .

Current Future requirment Not requirment Own forwarder

requirment
55% 12% 15% 18%

Figure 6.5

Current requirment of companies 55% Future requirment is 12% Not requirment is 15%
Own Forwarder 18% .

53
 CHAPTER 7

FINDINGS

54
 FINDINGS

From the analysis of the data I collected during the study I present following
Findings:

 Awareness level about Abhi Impact Logistics Solutions Pvt Ltd among the
existing customers is high.
 Most customers compared Abhi Impact Logistics Solutions Pvt ltd with
DHL and secondly with Fed Ex.
 Satisfaction level of existing customers is satisfactory, however for the
future prospects more changes and efforts have to be taken.
 Location of Abhi Impact Logistics Solutions Pvt Ltd is good as targeted B &
C customer.
 There is almost 50% retention of customers visited the store before as per
the analysis.

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  Well awareness Abhi Impact Logistics Solutions Pvt Ltd in customer.

CHAPTER 8

LIMITATION OF PROJECT
56
 LIMITATION OF PROJECT

There was some limitation during the project.

1. My Business Development scheme was limited to only the customers who are
based in Small Industries area.

57
 2. When I was filling the Questionnaire most of customers did not interested to
give information to me.
3. Sometime permission was restricted in the company.
4. For filling questionnaire nobody was free without appointment.
5. Some persons did not give answers of some secret questions.
6. Our selection of Industries was random so it can be biased.

7. Difficulty in lack of about functioning proved as a hurdle in our research

CHATER 9

58
 SUGGETION

SUGGETION

59
From the Internship I found some new techniques that are applicable for better

Improvements.

1. Company should establish back office for internal support.

2. Company should start some sales promotional activity for better attraction in
customer’s memory.
3. Company should focus on the transportation services.
4. Company should focus on B & C type customers for better profit.
5. Company should increase marketing executive team.
6. To concentrate on advertisement.
7. Above can be done by expanding its expertise network, also by improving
quality of services at a competitive price.
8. Also impact should make effort to make aware to customers about new trends in
3pl /4pl also telling them benefit of outsourcing.
9. .Last but not least impact should focus on slowly to big customers so that it can
expand the size of business and can create Brand name in market for itself

60
 CHAPTER 10

BIBLEOGRAPHY

61
BIBLEOGRAPHY

Reference books

1) International Logistics

By Devid Pierre

2) International Trade and Export Management

By Francis Cherunilam

3) Export Import Procedures and Documentation

Dr.khushpat S.Jain

Referred website

1) www .impact-logistics.in
2) www.indiamart.com

3) www.google.com
4) Wikipedia.com

5) Yahoo.com

62
 CHAPTER 11

ANNEXURE

• Questionnaire-

63
Annexure

Questionnaire-

64
 Questionnaire / Sales Report for Freight Forwarding and or customs
clearance

Mktg / Sales coordinator's name

Date of Visit

Company Name

Address

Telephone / Mobile

Fax

E-mail

Website

Contact Person

Designation

Mobile No.

Person to whom visited

Designation

Mobile No.

Nature of business

Imports :
If the company has any
imports ?

If yes, from which countries ?

Please specify the ports of

loading.

What is the mode of transport ?

(By air or by sea or both)

What are the items that they

import ? (material / commodity)

What is the volume of imports

in terms of number of
shipments per month ? (sector /
port wise)

Please state the sectors / ports

here ==> 65

By By By By By By
By Air Sea Air By Sea Air Sea Air Sea